What's happened
As of December 22, 2025, Paramount Skydance, led by David Ellison and backed by his father Larry Ellison, has revised its $108 billion hostile bid for Warner Bros. Discovery (WBD) to include a personal guarantee from Larry Ellison. This move addresses WBD's board concerns over financing certainty. Meanwhile, Netflix's $83 billion deal for WBD's film and streaming assets remains favored by the board, with President Trump personally involved in the antitrust review of the acquisition.
What's behind the headline?
Financing Certainty and Board Skepticism
Warner Bros. Discovery's board has consistently expressed doubts about Paramount's financing, particularly the reliance on Larry Ellison's revocable trust rather than a personal guarantee. This skepticism has been a key factor in favoring Netflix's offer, which is seen as more binding and less risky.
Political Influence and Regulatory Hurdles
Larry Ellison's close ties to President Trump have been cited by Paramount as a potential advantage in navigating regulatory approval. However, Warner Bros. Discovery and Netflix dispute that this relationship reduces regulatory risk, emphasizing that Netflix's deal has robust debt commitments and no equity financing contingencies.
Strategic Implications for Streaming Wars
The acquisition will reshape the streaming landscape. Netflix's deal focuses on WBD's studio and HBO Max, while Paramount's bid includes the entire company, including cable channels like CNN. Netflix's offer includes a $5.8 billion termination fee, signaling confidence in regulatory approval, whereas Paramount's bid has faced questions about foreign investment and antitrust concerns.
Market and Shareholder Dynamics
Paramount's hostile bid appeals directly to shareholders with an all-cash offer, which some investors prefer for its immediacy and certainty. Media investor Mario Gabelli has publicly supported Paramount's bid. The bidding war has caused volatility in both companies' stock prices, with speculation about potential further increases in offers.
Forecast
Paramount's addition of a personal guarantee from Larry Ellison strengthens its position but may not be sufficient to sway the WBD board, which remains confident in Netflix's offer. The regulatory review, influenced by President Trump's involvement, will be decisive. The outcome will significantly impact the future of Hollywood's content ownership and the competitive dynamics of the streaming industry.
What the papers say
Lauren Hirsch of The New York Times reports that Warner Bros. Discovery's board rejected Paramount's initial bid due to concerns over the revocable trust backing Larry Ellison's financing, prompting Paramount to add a personal guarantee to its offer. Mark Sweney in The Guardian highlights the board's focus on financing certainty and regulatory risks, noting the withdrawal of a key investor, Affinity Partners. Charles Gasparino of the New York Post provides insight into the bidding war dynamics, emphasizing Paramount's all-cash appeal and the involvement of Middle Eastern sovereign wealth funds, while also noting skepticism about the trust's revocability. Holly Williams in The Independent and The Guardian detail President Trump's personal involvement in the antitrust review, underscoring the political dimension of the deal. France 24 and Al Jazeera provide context on the competing bids and the strategic stakes for streaming dominance. These sources collectively illustrate a complex interplay of financial, regulatory, and political factors shaping the outcome of this high-stakes media acquisition.
How we got here
Warner Bros. Discovery (WBD) is at the center of a bidding war between Netflix and Paramount Skydance. Netflix agreed to acquire WBD's film and streaming assets for $83 billion, while Paramount launched a hostile $108 billion all-cash bid backed by Larry Ellison's family trust and Middle Eastern sovereign wealth funds. The WBD board has favored Netflix's offer, citing better value and certainty, while Paramount has challenged this, appealing directly to shareholders. The deal faces intense regulatory scrutiny, with President Trump personally involved in the antitrust review.
Go deeper
- What are the main differences between Netflix's and Paramount's offers for Warner Bros. Discovery?
- How is President Trump involved in the Warner Bros. Discovery acquisition?
- What are the regulatory challenges facing the Netflix-WBD deal?
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Netflix, Inc. is an American technology and media services provider and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California.
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Warner Bros. Discovery is an upcoming American multinational mass media and entertainment conglomerate. The company will be formed though the merger of WarnerMedia and Discovery, Inc., which is expected to be completed by mid-April 2022.
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Theodore Anthony Sarandos Jr. is an American businessman who serves as the co-chief executive officer and chief content officer for Netflix.
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Lawrence Joseph Ellison is an American business magnate, investor, and philanthropist who is a co-founder and the executive chairman and chief technology officer of Oracle Corporation.
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David Ellison is an American film producer and the founder and CEO of Skydance Media.
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David M. Zaslav is the president and chief executive officer of Discovery Inc., a position he has held since January 2007.
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